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Income Tax · NRI taxation

Does an NRI need to file an ITR in India — and how?

✍️ Answered by EaseValue Advisors · Updated 17 Jul 2026 · 5-min read
Quick answer

An NRI must file an Indian return if India-source income crosses the basic exemption, to claim a refund of excess TDS, or to report capital gains. NRIs use ITR-2 (or ITR-3 for business), report only India-source income, and claim DTAA relief.

When an NRI must file

  • Your India-source income (rent, capital gains, interest, Indian salary) exceeds the basic exemption.
  • You want to claim a refund — e.g. TDS was deducted at high rates on property sale, rent or NRO interest.
  • You have capital gains (even a loss you want to carry forward).

What's taxable

Only India-source income — your foreign income is outside India's net. See what income of an NRI is taxable.

Which form & how

  1. Use ITR-2 (no business) or ITR-3 (business) — NRIs cannot use ITR-1.
  2. Report India-source income; claim TDS credit from 26AS/AIS.
  3. Use a TRC + Form 10F for DTAA rates and Form 67 for foreign tax credit where relevant.
  4. Cut excess withholding with a lower-TDS certificate.

Returning to India?

Your RNOR status keeps foreign income tax-free for 2–3 years.

General information based on the Income-tax Act as it stands, not advice on your specific case. Tax outcomes depend on your exact facts and residential status. © EaseValue Advisors LLP.
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